Zero Down Payment: Get a new car without down payment, this is the easiest way..

Zero-down payment car loan: Buying a new car is everyone's dream, but for many, finding the down payment becomes a major challenge. This is why many people postpone their car purchase plans. But now there's no need to worry, as many banks and finance companies have introduced zero-down payment schemes. Under this scheme, you can drive your new car home directly from the showroom without making any upfront payment.

How does a zero-down payment scheme work?
Under this scheme, you don't need to pay a large down payment at the showroom when purchasing a car. The bank or finance company finances the entire on-road price of the car. You then repay the loan gradually through EMIs. This means you won't have to pay a single rupee out of your pocket when purchasing the car.

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To illustrate this with a simple example, suppose you're buying an electronic item worth ₹60,000. Typically, you'd need to pay a down payment of at least ₹10,000. But if you choose a zero down payment, you can take home the item without paying a single rupee. The same principle applies to car purchases.

How to get a zero-down payment car loan?
Many banks offer their existing customers the option of purchasing a car with a zero down payment, known as a pre-approved car loan. If you have a good credit score or a high income, you can avail this facility. This loan is typically offered for a term of up to 7 years. However, a processing fee is charged.

The interest rate is slightly higher.
Typical car loans typically have an interest rate of around 8.75% to 9%, but with a zero down payment, this rate can go up to 9% to 10%. A zero down payment loan covers the car's ex-showroom price, registration, road tax, and insurance. However, if you add accessories, you have to bear the cost yourself. This loan requires an Aadhaar card, a PAN card, address proof, income-related documents, a six-month bank statement, and, in some cases, guarantor information.

Which banks offer zero-down payment loans?
Major banks and finance companies like SBI, HDFC, Axis Bank, and Bajaj Finance offer this facility. Their application process is simple and requires minimal documentation. However, not everyone is eligible for this scheme. Banks determine eligibility based on credit score, income, and other essential factors.

This scheme is particularly beneficial for those who want to purchase a car without investing their savings, or who currently lack the funds for a down payment. This facility is available for both new and used cars, but requires meeting certain criteria such as income, age, employment, and credit score.

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